The Gig Economy

Published March 30th at 10:00am

When you hear the term ‘gig economy’ the first thing that springs to mind is music, and you’d therefore assume that a gig economy would be the finance behind concerts and the like. However, it was actually a phrase first coined back in in 2009 during the height of the financial crisis when the unemployed made money by ‘gigging’ at part time jobs wherever they could. Seven years on the term hasn’t gone away. Far from it - there’s a very good chance it will change the way we think about employment in 2016.

Although it’s somewhat difficult to pin down exactly what the gig economy is, there are a wealth of examples that have been given to us by the modern technological advancements. Today’s digitally enabled gig economy was preceded by marketplaces such as ELance wherein computer programmers and designers could compete for short-term work assignments to make a living. But the gig economy isn’t just creating a new digital channel for freelance work - it is spawning a host of new economic activity seemingly with every passing day.

Millions of people sell jewellery, clothing and accessories through Etsy, Airbnb has taken the holiday accommodation marketplace by storm and who could forget Uber - the rideshare company that needs no introduction, such is its impact on the market. In fact, the gig economy has become such a force that the workers are looking for certain rights to be enshrined in law.

In California, a proposed self-organising act, which was introduced in early March, would create a legal framework for workers classified as independent contractors like Uber drivers to join together and negotiate wages and working conditions with gig economy companies they work for. The reason behind all this is that, although it’s certainly empowering to be your own boss, there’s also a huge case for a steady wage, fixed work hours and company-provided benefits. It’s much harder to plan your life longer term when you don’t know how much money you’re going to be making next year.

Although the gig economy is certainly in its infancy right now and has many bugs to be worked out, it could stand as an indicated of the future of employment. As a society we are wandering towards a future of high automation and low traditional employment - even Uber drivers could be forced out of work with the addition of autonomous vehicles. However, as one industry dies another replaces it - the million dollar question is what comes next in employment? In 50 years time, what will be our gig?